Philstar
IMF pushes consolidation, flags key tax reforms
The International Monetary Fund (IMF) urges Philippine authorities to pursue gradual fiscal consolidation over the medium term to rebuild fiscal space, support external balance, and ensure debt sustainability.
The IMF's staff report for the 2025 Article IV Consultation indicates that the fiscal deficit is projected to decline to 3.1 percent of gross domestic product by 2030, requiring an annual reduction of about 0.5 to 0.6 percentage point of GDP in the overall deficit from 2027 to 2030.
With no new tax policy measures assumed in the baseline projections for 2027 to 2028, fiscal consolidation is expected to be achieved largely through lower spending.
Despite this, the Fund projects national government debt to decline gradually to about 60 percent of GDP by 2030, supported by a favorable interest rate-growth differential.
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